{"id":3023,"date":"2020-03-25T04:51:53","date_gmt":"2020-03-25T04:51:53","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=3023"},"modified":"2020-05-14T05:38:01","modified_gmt":"2020-05-14T05:38:01","slug":"cash-management-hacks-for-smes","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/","title":{"rendered":"Cash Management Hacks For SMEs"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"450\" height=\"300\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/03\/Cash-Management-Hacks-For-SMEs-450x300.jpg\" alt=\"Cash-Management-Hacks-For-SMEs\" class=\"wp-image-3024\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/03\/Cash-Management-Hacks-For-SMEs-450x300.jpg 450w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/03\/Cash-Management-Hacks-For-SMEs-768x512.jpg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/03\/Cash-Management-Hacks-For-SMEs-870x580.jpg 870w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/03\/Cash-Management-Hacks-For-SMEs.jpg 2000w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><figcaption>Cash-Management-Hacks-For-SMEs<\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#Cash_Management_is_the_Solicited_Rule_of_Business\" title=\"Cash Management is the Solicited Rule of Business&nbsp; \">Cash Management is the Solicited Rule of Business&nbsp; <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#Analysis_of_cash_flow\" title=\"Analysis of cash flow\">Analysis of cash flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#Benefit\" title=\"Benefit\">Benefit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#Maintain_your_business_invoices\" title=\"Maintain your business invoices\">Maintain your business invoices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#Benefit-2\" title=\"Benefit\">Benefit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#Derive_a_cash_flow_pattern\" title=\"Derive a cash flow pattern\">Derive a cash flow pattern<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#Equilibrium_%E2%80%93_payables_and_receivables\" title=\"Equilibrium &#8211; payables and receivables\">Equilibrium &#8211; payables and receivables<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#Reduce_cash_outflow\" title=\"Reduce cash outflow\">Reduce cash outflow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/cash-management-hacks-for-smes\/#To_conclude\" title=\"To conclude \">To conclude <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cash_Management_is_the_Solicited_Rule_of_Business\"><\/span><strong>Cash Management is the Solicited Rule of Business&nbsp;<\/strong><br><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The power of cash flow in business describes what we do, how we do, and what needs to change for positive cash flow. When it comes to running a business, cash is the pivotal notch around which every transaction revolves. It is the king of any business &#8211; the lifeline which keeps the business flowing and growing.&nbsp;<br><\/p>\n\n\n\n<p>Cash flow in simple terms means, the flow of cash coming in and going out in business. Cash management, however, means to create a balance between these two in such a way that positive cash flow is on the higher side. Regardless of the size, duration, and origin of the business, managing cash inflow and outflow is ought to be an integral part of the company.&nbsp;<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color\">Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/cash-crunch-7-tips-to-avoid-it\/\">Cash Crunch: 7 Tips To Avoid It<\/a><\/p>\n\n\n\n<p>Cash management can be a tough chore especially if you have just started. Therefore, here are some hacks for SMEs to keep their cash flow on the positive side of the balance sheet:<em>&nbsp;<\/em><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Analysis_of_cash_flow\"><\/span>Analysis of cash flow<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Examining the cash flow provides an insight related to how much money is the business getting in and how much cash is leaving the business in a month. Anticipating cash flow aids in cost-cutting whenever the business needs it and can provide you with the edge of enough cash whenever your business needs it.&nbsp;<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefit\"><\/span>Benefit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Keeping an eye on your monthly cash flow will help you prioritize tasks in business. Only when you know what you are left with, you can cut down on expenses that can wait. <\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color\">Also Read:&nbsp;<a href=\"https:\/\/www.indifi.com\/blog\/change-the-way-you-think-of-debt\/\">Change The Way You Think Of Debt<\/a><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Maintain_your_business_invoices\"><\/span>Maintain your business invoices<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Going digital is an essential part of the business. Thus, it adds the leverage of time and energy when it is about maintaining the accounting records of business due to the availability of software nowadays. In earlier times, keeping a record of every business transaction was not that easy, mostly because it was all hand-written.&nbsp;&nbsp;<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefit-2\"><\/span><strong>Benefit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Taking care of invoices in business aids in knowing the exact amount of cash inflow and outflow. Also, invoices give you the power of knowing who owes the business what and when are the dues payable? <em>\u00a0<\/em><\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color\">Also Read:&nbsp;<a href=\"https:\/\/www.indifi.com\/blog\/how-to-immunise-yourself-to-inflation\/\">How To Immunize Yourself To Inflation<\/a>&nbsp;<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Derive_a_cash_flow_pattern\"><\/span><strong>Derive a cash flow pattern<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For SMEs, it is essential to derive their unique cash flow pattern. Businesses are different in many ways even when they belong to the same industry. This means, their working style, cash flow, and transaction pattern are also different. Knowing what your competitors are doing and are good at is fine, but following their cash flow pattern can be a bad move for your business.&nbsp;<br><\/p>\n\n\n\n<p><strong>Benefit:<\/strong> having a cash flow pattern prepares you for any unforeseen loss in the business. It also aids in examining accounting, sales, and revenue effortlessly. Like our daily lives, the patterns make it easier for us to do our daily jobs. Similarly, in business, you can focus on major decisions when daily transactions are already taken care of by the pattern.<em>&nbsp;&nbsp;<\/em><\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color\">Also Read:&nbsp;<a href=\"https:\/\/www.indifi.com\/blog\/financing-company-debt-vs-equity\/\">Debt Or Equity: Find Out What\u2019s Best For Financing A Company<\/a><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Equilibrium_%E2%80%93_payables_and_receivables\"><\/span>Equilibrium &#8211; payables and receivables<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This element is neglected by most businesses to comprehend cost-cutting measurements. To maintain positive cash flow, money that comes in has to compensate for the money that goes out from the business in an equilibrium way. Ensure to keep the terms of payment with your customers the same that you keep with your suppliers.&nbsp;<br><\/p>\n\n\n\n<p><strong>Benefit:<\/strong> this bridges the gap between your payables and receivables. Imagine, giving your customer a month to clear all his dues when you have to pay your supplier within a fortnight. You surely cannot get away from this without paying a late fee penalty to your supplier. <em>&nbsp;<\/em><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduce_cash_outflow\"><\/span>Reduce cash outflow<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is the thumb rule of any business &#8211; whether you have taken a business loan or have financers investing in your business, cost-cutting is the only way to get the business going for long. The expenses that can wait should not be incurred when not needed. For instance, replacing a piece of machinery whose part is not working optimally is not the ultimate solution. Instead, you can fix the part of machinery that needs replacement.&nbsp;<br><\/p>\n\n\n\n<p><strong>Benefit<\/strong>: it gives you the added advantage of using this cash on an unavoidable transaction. Sometimes in business, certain transactions appear spontaneously. What will you do if your cash outflow is already keeping your business at the edge?<em>&nbsp;<\/em><\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color\">Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/profitable-cash-flow-management-tips\/\">Cash Flow Management Tips For Seasonal Businesses To Remain Profitable Year Around<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"To_conclude\"><\/span>To conclude<br><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Your business cannot run out of cash else, you will run out of business soon. These five hacks will aid you in maintaining positive cash flow. For businesses that need loan assistance, for them, <a href=\"https:\/\/www.indifi.com\/\">Indifi<\/a> is the ultimate solution. It ensures to help businesses avail loans by reducing risk, minimizing paperwork, and providing a pleasurable experience. It is a market leader when it comes to backing up the business financially when other <a href=\"https:\/\/www.indifi.com\/\">financial institutions<\/a> fail to do it.<em>&nbsp;&nbsp;&nbsp;&nbsp;<\/em><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cash Management is the Solicited Rule of Business&nbsp; The power of cash flow in business describes what we do, how we do, and what needs to change for positive cash flow. When it comes to running a business, cash is the pivotal notch around which every transaction revolves. It is the king of any business [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3024,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[700,698,699,139],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3023"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=3023"}],"version-history":[{"count":2,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3023\/revisions"}],"predecessor-version":[{"id":3235,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3023\/revisions\/3235"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/3024"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=3023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=3023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=3023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}